Short squeeze or lemming run?
Internet stocks surge as investors shift assets
Reuters Story - March 09, 1998 13:18
LOS ANGELES, March 9 (Reuters) - Internet company stocks
surged Monday as investors rushed to shift funds out of the
stocks of hardware and chip makers, analysts said.
The change of strategy made Internet service providers and
companies involved in Internet commerce among the biggest
gainers on Nasdaq.
Amazon.Com was up 7-1/2 to 84-1/4. Yahoo! Inc
jumped 5-3/16 to 85-3/4. Excite Inc rose 4-5/16 to 52-13/16, and Onsale Inc added 2-13/16 to 31-1/2. On the New York Stock Exchange, America Online Inc was up 3-1/2 to 125.
The steep gains followed a wave of earnings warnings last
week by several computer and chip makers, which was helping
make Internet companies the investment of choice in the
technology sector.
"As we get into the next (earnings) reporting period, we
are seeing more preannouncements. It appears investors are
shifting their assets," said BancAmerica Robertson Stephens
analyst Keith Benjamin.
Among the companies warning of weaker than expected
earnings last week were Compaq Computer Corp , Motorola
Inc and Intel Corp .
While these companies are feeling the pinch of reduced
demand, analysts said the slowdown does not appear to affect
Internet-based businesses, which continue to benefit from a
surge in the number of people going online.
((Los Angeles newsdesk (213) 380-2014, fax (213) 622-0056)) |
